Buying Tennessee Real Estate: A Path to Wealth
Unlike many other investments, real estate has a long history of positive returns. For example, according to the U.S. Census Bureau, the median value for an American home increased a staggering 268 percent between 1950 and 2000. This increase, combined with record-low interest rates, has spurred a home buying craze that has pushed values even higher in cities across the country, including in Tennessee. What attracts people to real estate is when you purchase a property with a mortgage; you’re really making two investments. First, you are building a financial interest (equity) in tangible assets with a relatively small monthly payment. With each payment, your interest in that tangible asset increases. Second, while you build equity, the value of the property appreciates. In the end, you may be able to sell the property for much more than you paid for it. No wonder why the U.S. Department of Housing and Urban Development (HUD) calls homeownership the “main path to wealth for individuals and families in the United States.”
Besides these benefits, there is also a measure of cost stability associated with buying Tennessee real estate. With a fixed-rate mortgage, your monthly payment could be the same for as long as 30 years, regardless of inflation or wage increases. Rent, on the other hand, will likely triple during that time. Which one would you rather pay thirty years from now, a $600 mortgage payment or a $1,800 rental payment?
The Tax Benefits of Real Estate:
When you buy a home with a mortgage, you are allowed to deduct the interest on your federal income tax return. This deduction could be as much as $10,000 to $30,000 a year, depending on the size of your mortgage. This deduction will be taken from your gross income, which means you will be taxed as if you made that much less that year. For example, if you made $100,000 in a given year and deducted $20,000 in mortgage interest, you would be taxed as if you only made $80,000 that year. Needless to say, the tax savings could be substantial.
In addition to deducting your mortgage interest, you can also deduct any property taxes you paid that year. Property taxes are also deducted from your gross income, thereby lowering your tax obligation. Some states will even allow you to deduct property taxes on your state income tax return. Check with your state’s Department of Revenue to see if you are allowed to take this deduction.
The Freedom of Owning Real Estate:
Clearly there are financial benefits to buying Tennessee real estate, but many people say it’s the freedom they enjoy the most about owning their home. They can decorate as they please, make any improvements they wish and enjoy the utmost privacy and independence that only comes with ownership. So what are you waiting for? Join the thousands who have bought Tennessee real estate and start living your dream today!
In today's competitive real estate market, timing is everything. Many good homes are sold before they are ever advertised. Beat other homebuyers to the hottest new homes for sale in Tennessee with my New Listings Notification.
If you own real estate that you're thinking of selling, I would be happy to provide you with a FREE Home Evaluation.
Whether you are buying or selling a home, hire someone like me, who wants to earn your business. I invite you to contact me as I'd be happy to assist you with this important transaction.
In addition, if you have any general questions about buying or selling real estate in Tennessee or any questions related to US real estate, feel free to contact me as I'm more than willing to help. Also browse my website for regular and current updated information’s regarding Tennessee and the whole US real estate industry.
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